A Study About The Dependency Of The Farmers' Credit Union Fund

In the context of China's rural financial supply shortage,the government encourages the establishment of The Farmers' Credit Union Fund actively(Hereinafter referred to as"FCUF").In recent years,with the characteristics of convenient procedures,low capital cost,and high information symmetry,FCUF has expanded its number and scale continuously.To a certain extent,it has expanded the financing channels and eased the difficulty of the short supply of funds,thus opening up a new path for the development of rural finance.However,with the rapid development of internet finance,the creation of financial products that are highly efficient,convenient,and supports cross-regional and micro-businesses has made the competition in the industry increasingly fierce.At the same time,the rural young labor force's migrant work has made frequent loss of customer problems,illegal business operations,and even bankruptcy.This has affected reputation and reduced trust among members.In this situation,farmers' dependence on FCUF has become an important issue for their future development.In order to solve this problem,this paper takes the member's dependency as the core,analyzes the status of the member's dependency through field survey data,and discusses the main influencing factors of dependency,so as to provide scientific advice for the future sustainable management and development of FCUF.Based on the existing theories and research results,we used the first-hand data collected from field surveys of five FCUF in Dongtai County-level City,Yancheng City,Jiangsu Province.Through descriptive statistics,we analyzed the development status of FCUF and the basic status of the dependency of the members.Taking 478 members as a sample,an orderly multivariate logistic model was constructed to study the main factors affecting the dependency of FCUF members.A sample of loan demand in the last three years was selected to empirically analyze the impact of loan demand on the dependency of members.The main conclusions of the study are as follows:(1)The dependency of the members on the FCUF is in the middle and below levels,and there is an aging trend,lack of young forces,low level of education,and the trend of the non-agricultural income.(2)The participation of loan business,management participation,whether it is a village cadre,the involvement of relatives and friends,familiarity with operational status are the main factors affecting the dependence of the members on the FCUF.Members' participation in the loan business and the members' conference will help them increase their dependency on FCUF;Members of non-village cadres have a relatively high degree of dependence;The more relatives and friends have joined the FCUF,and the higher familiarity with operational status,the higher degree of dependency of the members.(3)Through further research on loan demand,the author finds that members with the demand for agricultural production loans are more dependent,indicating that agricultural production loans are highly available.Finally,based on the research conclusions,this paper proposes that the degree of dependency of members should be tailored to local conditions to improve the participation of loan business,solve the problem of management participation of members,give full play to the advantages of rural "geographical,blood,and occupational advantages",excavating customers with the demand for agricultural production loan,improve the information disclosure mechanism and enhance the transparency of management information.This will promote the sustainable development of FCUF in the future.